Transfer Partnership Interest on death

What is the name of your state (only U.S. law)? Texas

Does anyone know of any issues with a transfer on death assignment of a limited partnership interest to avoid probate of such an asset.

Tax issues are not a concern just the transfer of the asset?

Beyond the fact I don't know what that is, no.

I'm assuming the partnership certificate has some endorsement on it? I don't know of it being tested in the courts. But, why wouldn't you just use a revocable trust to hold the partnership rights?

I see no reason why such an assignment to be effective on the death of the assignor would not be treated as a non-testamentary transfer. Almost every other asset form can be made to pass without probate.

But are you aware that there is an essential distinction between the assignment of “a limited partnership interest” and “the assignment of the rights of a limited partner”?

See: The Texas case of Bird et al. vs. Lubricants USA, PA, et al. Court of Appeals 2nd District of Texas, Fort Worth - Case No. 2-06-061 (2007)

Now that Latigo pointed out something I didn't even consider, you might have to research to see if such a form creates a security you need to register with the Securities and Exchange Commission for transfer on death with just a death certificate.

Info edit:
With a quick search, it seems Texas is the only state in the union which does not have some version of the Uniform Transfer-on-Death Security Registration Act. You need to be very sure a security is not created with the death assignment.

Info edit, edit:
It seems it would be a security by my reading of a bill which passed in Texas. See:
http://www.texasprobate.com/97leg/sb504.htm

However, see also:
http://www.premack.com/columns/2008/2008-05-27.htm

Which says:

After the Governor signed the bill, his office decided it was a bad idea. They added a clause to another bill to repeal the Act. The legislature passed the repeal and the Governor signed it, all before September 1… so the Act vanished before it took effect. (75th Legislature (1997) SB 504 created the Act, and SB 506 repealed the Act.)

Click to expand...

Maybe it isn't possible after all. However, I'm just brainstorming and don't express an opinion.

Wow, Thank you for the good advice. It seems to me it would be easy to do but I can't find any examples thus the questions.

I do understand it might only be a transfer of certain interests and not rights. Also, it is not a large asset at this point and really the only thing still out there to take care of thus I would try to avoid a trust if possible.

Even though I think the TOD will work fine, I may just recommend we go ahead and assign it now since the assignor is at an advanced age anyways.

Any more advice is appreciated and I was also confused by the TOD securities issues.